10-25-2015, 09:52 PM
(10-25-2015, 06:25 PM)SunsetBengal Wrote: Exactly. Because by allowing bloated financial and corporate entities to fail would only result in a boon for smaller and mid sized companies and financial institutions. In my mind, bailing out crippled corporate giants is akin to giving an alcoholic a credit account at the local liquor store.
This is pretty naive, and a perfect example of the fairy tales that Ayn Rand fans would spew. If a large corporation fails then another large corporation picks up the slack. New entrants generally can not compete against established market shares. For example, if we had let GM fail then foreign automakers who already lead the market would have picked up most of the business. At a time when credit was impossible to get there was no way another new company was going to rise up and take GMs place.
And with the lending industry we had to bail them out to keep the economy from crashing. And the only way to avoid having to do that again is MORE GOVERNMENT REGULATION. They are not going to do it themselves. the new corporate model is to maximize instant short term profits even if it means destroying the entire industry.
